Disability as Diversity in Fortune 100 Companies

Transcription

1 Behavioral Sciences and the Law Behav. Sci. Law 23: (2005) Published online in Wiley InterScience ( DOI: /bsl.629 Disability as Diversity in Fortune 100 Companies Phoebe Ball, y Gregory Monaco, z James Schmeling, Helen Schartz k and Peter Blanck*,{ To investigate the inclusion of people with disabilities in the diversity policies of the most successful businesses in the United States, we examined the publicly available workforce and supplier diversity policies of the top 100 companies on Fortune Magazine s 2003 list of the 500 most profitable companies in the nation. The majority of these companies have extensive information about their diversity policies and practices available on their corporate website. The information was used to categorize the policies into those that include people with disabilities, do not define diversity, and enumerate what is meant by diversity (e.g. in terms of race or gender) but do not expressly mention disability. In addition, we looked beyond the diversity policies to information available on corporate websites relating to a variety of diversity initiatives. Findings suggest that the majority of the companies that top the Fortune 500 list have developed and implemented diversity *Correspondence to: Peter Blanck, Law, Health Policy and Disability Center, University of Iowa College of Law, Iowa City, IA 52242, U.S.A. y Phoebe Ball is Program Associate, Law, Health Policy and Disability Center (LHPDC), University of Iowa College of Law; J.D., Northeastern University School of Law. z Gregory Monaco is Note and Comment Editor, Iowa Law Review, University of Iowa College of Law; J.D. (expected May, 2005). James Schmeling is Associate Director, LHPDC, University of Iowa College of Law; J.D., University of Iowa. k Helen A. Schartz is Director of Research, Associate Research Scientist, LHPDC; Ph.D., University of Iowa; J.D., University of Iowa College of Law. { Peter Blanck is Charles M. and Marion Kierscht Professor of Law, and Professor of Public Health, and of Psychology at the University of Iowa, and Director of the LHPDC, Ph.D., Harvard University, J.D., Stanford University. The program of research described herein is supported, in part, by grants to Blanck from The National Institute on Disability and Rehabilitation Research (NIDRR), U.S. Department of Education grants: (1) Technology for Independence: A Community-Based Resource Center, #H133A021801; (2) IT Works, #H133A011803; (3) The Rehabilitation Research and Training Center on Workforce Investment and Employment Policy for People with Disabilities, #H133B ; The University of Iowa College of Law Foundation; and a generous endowment to the LHPDC from Stan and Gail Richards. For information on LHPDC grant funding, see The authors would like to thank William Myhill and Daniel Kresowik for their editorial assistance. Contract/grant sponsor: The National Institute on Disability and Rehabilitation Research (NIDRR). Contract/grant sponsor: U.S. Department of Education; contract/grant numbers: H133A021801; H133A011803; H133B Contract/grant sponsors: The University of Iowa College of Law Foundation. Copyright # 2005 John Wiley & Sons, Ltd.

2 98 P. Ball et al. policies. Of these, 42% have diversity policies that include people with disabilities in the definition of a diverse workforce. Furthermore, 47% of companies with workplace diversity policies discuss diversity in a way that neither expressly includes nor excludes people with disabilities. Far fewer (15%) supplier diversity policies include disability in the definition of diversity, but a significant number of companies use criteria that allow a business owner with a disability to benefit from the company s supplier diversity program. Copyright # 2005 John Wiley & Sons, Ltd. INTRODUCTION Companies in virtually all sectors of the economy are beginning to recognize that diverse employee backgrounds enhance competitiveness in the global economy (Ramirez, 2000). Ninety-two of the one hundred most economically prosperous companies in the nation, the Fortune 100, have policies that express a commitment to promoting diversity in the workplace. 1 Many of these companies also have policies that support minority-owned suppliers. Most corporate diversity policies reflect management s desire to create an atmosphere of integration in the company. A culture of integration is based on highlighting and seeking out potential benefits of individual differences, including bringing new insights into product or service development, enhancing group decision quality and creativity, and generally enriching the set of experiences and perspectives that comprise the work environment (Spataro, 2005, p ). Although many corporate diversity policies include racial, ethnic, cultural, and gender components, fewer than one-half of those on the Fortune 100 list have written diversity policies that expressly include persons with disabilities within the definition of diversity, and even fewer have supplier diversity statements that do so. Moreover, those companies that include disability under the umbrella of diversity often do so in the context of their standard equal opportunity statement without expressing further commitment to employing people with disabilities. This article examines the degree to which people with disabilities are included in the written diversity policies of companies in the top 100 of the Fortune 500 list for Fortune magazine has since released the 2004 list; however, this list has changed little from the prior year, so this research remains relevant to the largest and most profitable companies in the United States. 2 1 Diversity statements were unavailable for AmerisourceBergen (2004), Berkshire Hathaway (2004), Walgreens (2004), Best Buy (2004), ConAgra Foods (2003), Archer Daniels Midland (2004), TIAA- CREF (2004a), and AutoNation (2004). 2 Five companies have been added to the list. An examination of their diversity policies is included in the section Finding from the diversity policies of the Fortune 100. The five companies discussed in this paper that are no longer in the top 100 are Cigna, Washington Mutual, Freddie Mac, Aetna, and Visteon.

3 Disability as diversity 99 The following section of this article highlights the reasons Fortune 100 companies have intensified their focus on diversity in recent years, the ways in which diversity policies benefit people in under-represented groups, and the degree to which people with disabilities are included in these statements. The next part explains the methodology used to determine the degree of inclusion of people with disabilities in Fortune 100 companies employee and supplier diversity policies. Then, we examine, in turn, employee diversity policies and supplier diversity policies. These respective discussions are subdivided into three discussions of written policies that (1) include people with disabilities explicitly, (2) do not define diversity in terms of specific groups, and (3) define diversity with reference to specific groups but do not include disability. In addition, in each of these categories, evidence is examined that is related to the commitment of Fortune 100 companies to hiring people with disabilities and promoting a positive workplace culture for their employees with disabilities. We then discuss our conclusions as to the status of disability as a respected element of diversity among the Fortune 100. We conclude with the implications of our findings for persons with disabilities, employers, and policymakers, and discuss whether disability itself is properly considered within traditional diversity programs that target women and minorities. FORTUNE 100 DIVERSITY INITIATIVES Diversity policies inure to the benefit of the companies by enabling them to attract and retain a workforce that generates new ideas and help[s] companies be more responsive in a diverse marketplace (Brancato & Patterson, 1999, p. 5). AOL/Time Warner s (2004) written diversity policy draws a connection between the company s commitment to diversity and shareholder value: To compete in the global economy, we must attract, develop and retain the world s best talent from among the broadest range of people, backgrounds and perspectives. The companies that are addressed in this article are leaders in their respective industries; it is a testament to the importance of diversity policies that the majority of the most successful companies in the United States have developed these policies. Our content analysis of diversity policies illustrates that, in addition to the importance of attracting a diverse workforce, companies recognize the benefit of promoting tolerance in the workplace. Johnson and Johnson s (2004) diversity policy statement notes that, [i]ntolerance is simply unacceptable. It divides people and creates barriers to the innovative, team-based environments that are so essential to our success as a corporation. Likewise, in Grutter v. Bollinger (2003), the Supreme Court cited briefs submitted by General Motors, 3M, and others as amici curiae for the proposition that major American businesses have made clear that the skills needed in today s increasingly global marketplace can only be developed through exposure to widely diverse people, cultures, ideas, and viewpoints (p. 330). ExxonMobil, E. I. Du Pont De Nemours and Company, and IBM filed briefs in Grutter stressing the importance of diversity in a global marketplace, though abstaining from expressing an opinion regarding the constitutional questions at issue (Brief of ExxonMobil Corporation as Amicus Curiae, 2003; Brief of Amici

4 100 P. Ball et al. Curiae Massachusetts Institute of Technology et al., 2003). In addition, a consortium of 65 businesses, including many Fortune 100 companies, 3 filed a brief in support of the importance of diversity stating that [t]he existence of racial and ethnic diversity in institutions of higher education is vital to efforts to hire and maintain a diverse workforce... [and] such a workforce is important to... continued success in the global marketplace (Brief for Amici Curiae 65 Leading American Businesses, 2003, p. *1). There is evidence from the review of corporate policy that employers recognize that managing diversity effectively as a part of a comprehensive human resource management program may reduce absenteeism and turnover and increase commitment to the organization and general satisfaction levels (Gandz, 2001). For example, Microsoft (2003) lists their diverse employee resource groups as an example of the company s attempt to help employees create their own balance between their work and personal lives. Additional evidence of the perception among large companies that diversity is an important factor in human resource management is found in a 1998 survey conducted by the Society for Human Resource Management (SHRM), which concluded that 84 percent of human resource professionals at Fortune 500 companies say their top-level executives think diversity management is important (SHRM, 2004). Finally, the proliferation of diversity management courses in colleges and workshops across the country indicates that diversity is an important and valuable part of human resource management (Cornell University School of Industrial and Labor Relations, 2003). This growing interest in sophisticated diversity management is partly motivated by a desire to avoid or mitigate the potential for lawsuits with catastrophic consequences. In 1996, Texaco agreed to pay $115 million to settle a discrimination claim filed by African-American employees. As part of the settlement, Texaco instituted diversity policies and programs designed to root out racism in the company s corporate culture (ChevronTexaco, 1996). 4 These problems, of course, are not unique to Texaco. Several of the top 100 companies have faced similar lawsuits. Coca-Cola Co., Microsoft, Boeing, Home Depot, and Lockheed Martin have been the target of high-profile class action discrimination suits (Ramirez, 2000; National Organization on Disability, 2003b). In particular, [e]mployees who sued Coca-Cola Co. achieved a $192.5 million settlement the largest ever in a race bias discrimination case brought in the United States (Hawkins, 2003, p. 54). Sociologist Lauren Edelman (1992) has argued that large companies such as those in the Fortune 100 create quasi-legal structures within their organizations, more so than other types of company. They are sensitive to the legal environment because they face lawsuits at a high rate. They are organizationally and financially equipped to develop policies and procedures for the mediation and adjudication of disputes within the organization to avoid resort to the formal legal system (Edelman, 1992). Therefore, diversity policies often have an impact on the internal dispute resolution and human resource management mechanisms within these major corporations. 3 Fortune 100 companies that signed onto this brief include Altria Group Inc., American Express Co., Bank One Corp., The Boeing Co., ChevronTexaco Corp. and many others. 4 For a discussion of corporate culture, see Schur, Kruse, and Blanck (2005).

5 Disability as diversity 101 Appropriate and effective diversity policies benefit traditionally under-represented groups in several ways. First, diversity initiatives fund scholarships and mentoring programs designed to cultivate a diverse workforce at the educational level. These initiatives benefit students who might otherwise face barriers to educational opportunities. One example is the Bank of America Abilities Scholarship, a $200,000 scholarship fund that students with disabilities can apply towards building the skills and training necessary to become successful members of the workforce (Bank of America Center for Scholarship Administration, 2002). Second, as part of their efforts to build on the public s perception that they are committed to diversity, many Fortune 100 companies engage in philanthropic activities in diverse communities. AOL/Time-Warner (2004) is one of many companies that promote activities that support a variety of community groups, including those supporting African Americans, Asians, Hispanics, Native Americans, women, gays and lesbians and the disabled. Third, companies that focus on diversity make efforts to develop products and services that appeal to and benefit the communities they serve. Customers in underrepresented communities are benefited when served by companies that anticipate and respond to their needs, allowing those customers to access higher quality goods and services (Gandz, 2001). If it is important that companies respond to the needs of minority communities generally, it is doubly important to the community of people with disabilities who may need products and services specifically designed to be accessible to them (Sandler & Blanck, 2005). Fourth, applicants to and members of the workforce benefit from the elimination of barriers to employment they might face in the job-market. For instance, companies attend job fairs that cater to under-served populations and make other efforts to reach out to workers who might otherwise face numerous barriers to employment. Altria Group (2004a), for example, notes its support of the Industry Labor Council, a group working for expanded employment opportunities for people with disabilities. These kinds of public/private partnership are a focus of federal initiatives such as the One-Stop system under the Work Incentives Improvement Act, which seeks to foster positive relationships between employers and people with multiple barriers to employment, such as people with disabilities (Blanck, Hill, Siegal, & Waterstone, 2003; Law, Health Policy and Disability Center, 2004). Finally, diversity policies that transcend the recruitment of under-represented groups and focus on the productivity of minority employees, female employees, and employees with disabilities have been shown to foster a supportive work environment for these employees. In an early study of 500 accommodations at Sears Roebuck, Blanck found that the low cost of accommodations for employees with disabilities produced substantial economic benefit to companies in terms of increased work productivity, injury prevention, reduced workers compensation costs, and workplace effectiveness and efficiency (Annenberg Washington Program, 1994, 1996). 5 5 These studies were conducted at Sears, Roebuck and Co. from 1978 to 1996, a time period before and after the July 26, 1992 effective date of ADA Title I. Nearly all of the 500 accommodations sampled required little or no cost. During the years 1993 to 1996, the average direct cost for accommodations was $45, and from 1978 to 1992 the average direct cost was $121.

6 102 P. Ball et al. Diversity policies that include a commitment to making accommodations for employees with disabilities not only reaffirm legal requirements imposed on the company, but also signal a top-level commitment to accommodating and including people with disabilities in the work environment. As noted by Schur et al. (2005) in this special issue, this kind of commitment has been found to be an important step in reducing barriers to employment for people with disabilities. Furthermore, diversity training and mentoring programs are a part of a comprehensive diversity initiative, and including people with disabilities in these programs may reduce barriers to employment (Schur et al., 2005). Diversity policies that promote the employment of people from under-represented groups have a positive impact on the businesses that promulgate them as well as in the communities that are targeted by the policies. In addition, policies designed to promote a diverse supplier base create entrepreneurial opportunities for small businesses owned by people from under-represented groups. However, these policies are inconsistent in their inclusion of people with disabilities within the definition of diversity. This article addresses this issue by examining the publicly available statements of Fortune 100 companies with regard to the inclusion of people with disabilities. What emerges is a description of the workplace and supplier diversity policies of the most successful companies in the nation vis-à-vis disability. DATA COLLECTION This article examines the stated diversity policies of Fortune 100 companies from the disability perspective. Table 1 illustrates the Fortune 100 companies surveyed in this investigation with diversity policies publicly available on their corporate websites. Table 1 shows the market break-out of the 100 companies in terms of industry affiliation. Early in the research process, the companies were divided into these general industry categories to facilitate comparison. In some cases, these categories are consistent with categories used on the Fortune 500 list. However, because this study concerns itself only with the top 100 companies on that list, some categories were merged to generate categories that would allow for comparisons among the limited number of companies examined here. Some of the companies surveyed may have workplace or supplier diversity policies that could not be located through searches of the publicly available information on the web. For example, although researchers found references to TIAA-CREF s supplier diversity policy, and that company has received accolades from such organizations as Working Woman magazine for that policy (Benham, 2001), the policy itself was not available on the corporate website (TIAA-CREF, 2004a). Additionally, some of the companies examined have supplier or workplace diversity policies associated with a division of the company that differ from the overall corporate policy. These were not examined within the scope of this study. To develop the summary presented in Table 2, two researchers independently identified and classified the content of the written diversity policies of Fortune 100 companies. There are two essential types of diversity policy: (1) workplace diversity policies with respect to employment, and (2) supplier diversity policies that promote the patronage of businesses owned by underserved populations. These two categories were then sub-divided according to whether the policy is (1) inclusive by

9 Disability as diversity 105 Inclusive Companies As a general matter, we observe in Table 2 that more than 40% of Fortune 100 companies include people with disabilities in workplace diversity policy statements. Although it is encouraging that a substantial number of Fortune 100 companies have realized the role people with disabilities play in building a diverse workforce, at this point we are not able to assess the extent to which the inclusion is meaningful. Many of the inclusive diversity statements mirror the standard, legally required, equal employment opportunity policy: [Company] is an Equal Employment Opportunity (EEO) employer and does not discriminate in any employer/employee relations based on race, color, religion, sex, sexual orientation, national origin, age, disability or veteran s status. 6 Examples of companies whose diversity policies are written this way include JP Morgan Chase (2004a), Intel (2004), IBM (2003), Lowe s (2004a), Verizon Communications (2001), Valero Energy Corp. (2004), Caterpillar (2000), and American International Group (AIG) (2003). In some cases, although the diversity policy mirrors the standard equal employment opportunity language, the corporate website indicates that the company engages in activities that evidence their commitment to diversity. Companies may show their commitment to diversity by highlighting (1) employee resource groups, (2) stories of diverse employees and their experiences with the company, (3) awards the company has received for their diversity initiatives, (4) efforts to recruit or retain a diverse workforce, (5) their involvement with special interest groups, or (6) efforts to make their products and services attractive and accessible to people in underrepresented groups. Unfortunately, many companies that include people with disabilities in their diversity statements do not elaborate on what that commitment means. Ford Motor Company (2003) includes people with disabilities in their equal opportunity statement. However, it is not apparent from Ford s written materials that the company has made similar efforts to recruit or retain employees with disabilities as it has done for other minority groups. Ford established, for instance, companysponsored Employee Resource Groups [that] provide support and fellowship, identify barriers, contribute to employees professional development, and provide organized activities for employees of diverse backgrounds (Ford Motor Company, 2003). These groups are geared toward a variety of minority groups, including African Americans, Muslims, women, and Asian-Americans. We could find no such existing group for employees with disabilities in the U.S. division of Ford. 7 It is not possible to say whether the lack of an employee resource group has an adverse impact on the recruitment or retention of people with disabilities in Ford s workforce, or even whether the lack of a resource group for employees with disabilities has a negative impact on potential consumers of Ford products who have disabilities. It does suggest that, at least in the United States, people with disabilities may not benefit from the kinds of scholarship, recruitment, and 6 This example arises from Williams (2004a). 7 Ford in Britain, however, has a Disability Action Group. Ford Motor Company (n.d.).

10 106 P. Ball et al. networking initiatives offered by the employee resource groups representing other minority and interest groups at Ford Motor Company (2003). By contrast, Fortune 100 companies in other industries have established resource groups for employees with disabilities. Microsoft, in the technology sector, has employee groups that provide support and networking opportunities, such as mentoring, college recruiting, career development, and promoting cultural awareness (Sandler & Blanck, 2005). Two of these groups in particular promote the interests of visually impaired and deaf and hard of hearing Microsoft employees (Microsoft, 2004). 8 In the communications sector, AT&T sponsors a number of business resource groups for employees, including Individuals with Disabilities Enabling Advocacy Link (IDEAL). The AT&T (2004) webpage states IDEAL s mission is to enhance understanding and awareness of the challenges facing individuals with disabilities in the work place, support programs geared towards the realization of common goals and objectives, and aid in the removal of barriers that impede the full development and optimum productivity of employees with disabilities. In the financial sector, JP Morgan Chase (2004b) sponsors interest groups for employees from a variety of backgrounds, including a group for employees with disabilities. Although categorized in the disability absent column in Table 2, Merrill Lynch has instituted a support group for employees/parents of children with disabilities, and co-sponsored the Blue Ribbon Panel on Corporate Culture and Disability (Law, Health Policy and Disability Center, 2003). In addition to sponsoring employee groups, Fortune 100 companies demonstrate their commitment to diversity in the workplace in other ways. Allstate (2004), Lockheed Martin (2004), and Sprint (2002) mention that they were named among the top 50 companies to work for by Careers and The disabled magazine. 9 Other companies that mention disability in their diversity policy dedicate a substantial section to discussion of disability issues with respect to employment in the company. Cisco Systems (2004) not only includes people with disabilities in its equal opportunity employment policy, but also indicates support for the ADA and its affirmative action initiative for people with disabilities. Weyerhaeuser (2001) notes that its managers are expected to encourage people with disabilities to apply for jobs and promotions for which they are qualified. Boeing (n.d.) notes its commitment to accommodating disability in the workplace exemplifies it s commitment to diversity. Morgan Stanley (2002) mentions its commitment to the employment of people with mental and physical disabilities, and notes the company has been recognized by organizations such as the National Alliance for the Mentally Ill for its employment and support of people with disabilities. 10 United Parcel Service (2004) has a special page devoted to discussion of disability in the workplace, where they mention their association with the National Federation of the Blind. 8 For further discussion of equal opportunity and accessibility issues specific to Microsoft, see Klein, Schmeling, and Blanck (2005) and Sandler and Blanck (2005). 9 Sprint (2002). While both Allstate and Sprint mention that ability is a component of diversity, it is unclear whether Sprint s policy refers to people with disabilities. 10 See also Northrop Grumman (2004) (noting its participation in the President s Committee on Employment of People with Disabilities).

11 Disability as diversity 107 In addition to company sponsored employee groups, expressions of a willingness to hire and promote women and minorities, and support for special interest groups, Fortune 100 companies note their participation in specialized job fairs geared towards minority students. However, none of the companies with workplace diversity policies that included people with disabilities made it clear that they focused on attending job fairs for people with disabilities. In addition to the presence of inclusive employment practices, we found that many companies highlight their efforts to appeal to a diverse marketplace. However, there was not always a relation between a workplace diversity policy that was inclusive of disability and evidence on the corporate website that the company was actively concerned with making products and services accessible to people with disabilities. Bank of America (2004a) promotes its accessible banking features for customers with disabilities such as large print and raised print checks, talking ATM machines, and TTY equipped banking by phone as an example of the company s attempts to market to a diverse body of consumers. Some technology companies express their commitment to disability by highlighting efforts to make their goods and services accessible. 11 IBM (2004) highlights their wide range of services aimed to help businesses and organizations embrace accessibility. Dell (2003a) includes people with disabilities in the definition of diversity and lists activities within minority communities, but notes none in the disability community. Dell further notes efforts to make technology available to minority groups; however, the company s website does not indicate that the company has focused on accessible technology for people with disabilities (Dell, 2003b). In some cases it is difficult to tell whether disability is included in the diversity statements. Hewlett Packard (2004a) notes that the definition of diversity includes men and women from different nations, cultures, ethnic groups, generations, backgrounds, skills, abilities. The wording of this diversity policy makes it impossible to ascertain whether the reference to abilities is a direct reference to people with disabilities or whether the term is being used more generically. Similarly, the companies described in the next subsection draft their diversity policies in such a way that it is not possible to determine from the policy at face value whether people with disabilities are considered an important part of a diverse workforce. Non-Committal Companies Unlike the companies that enumerate the groups they would like to recruit and retain to develop a diverse workforce, the companies in this section applaud diversity but never describe it (see non-committal column in Table 2). Forty-three companies (47% of companies with diversity policies) do not define diversity in 11 Microsoft (2001), for example, created its internal accessible technology group (ATG) to assist its hardware and software product groups in developing more accessible products, and they work with the National Business and Disability Council on the Able to Work Consortium, which is an independent business consortium dedicated to increasing employment opportunities for people with disabilities (see also Sandler & Blanck, 2005). Wells Fargo (2004) highlights its 2003 award for making education accessible to persons with disabilities. In contrast, Dell (2003b) fails to discuss increasing the accessibility of products to persons with disabilities on its Increasing access to technology website, despite defining disability within its diversity statement.

12 108 P. Ball et al. terms of which groups contribute to a diverse work environment. Therefore, unless there is evidence of the commitment of these companies to employing people with disabilities beyond the diversity statements, it is not possible to tell who benefits from these diversity policies. Home Depot s (2004) statement on diversity indicates that diversity makes this Company the vital place that it is. We promise to maintain a safe and healthy workplace for all of our associates and to treat everyone with respect and dignity. Companies that offer broad statements in support of diversity may further describe their activities to promote diversity. Many of these companies outline their diversity initiatives, highlight the percentages of minority employees, and describe philanthropic activities that benefit traditionally under-represented groups. These statements show that these companies often focus exclusively on race, gender, and ethnicity where workplace diversity is concerned. BellSouth (2004a), for instance, declines to categorically define diversity. In discussing the accolades they have received for diversity, the percentages of women and minorities in the workplace, and company-sponsored employee organizations, the focus is on women and minority groups, such as African-Americans, rather than on people with disabilities. BellSouth (2004b) mentions on their website, nonetheless, that they are engaged in making their products accessible to people with disabilities. Fannie Mae (2004) notes it has been recognized by a number of groups for the percentage of women and minorities comprising its workforce, but does not indicate the number of employees with disabilities at the company. Similarly, State Farm Insurance (n.d.a) and Sprint (2004) focus on race and gender in describing the accolades their companies have received for workforce demographics. 12 Kmart has no stated diversity policy, but the corporate website devotes space to a discussion of Kmart s multicultural initiatives. The fact that 32% of Kmart s workforce is made up of multicultural minorities is highlighted, but no mention is made of the percentage of people with disabilities employed (Kmart, 2000). The highlighting of accolades and initiatives aimed at minority groups, without mention of disability, is a common trend of Fortune 100 companies with broad diversity statements, as is a focus on women and racial and ethnic minorities when describing workplace demographics. 13 This suggests that, though these statements seem inclusive, people with disabilities are not a focus of these companies efforts to promote diversity. In contrast, some companies whose diversity statements are broad provide evidence of their commitment to including people with disabilities in the workforce. 12 State Farm (n.d.a) specifically notes its awards received from Hispanic, Chinese, and Korean publications and organizations. FedEx s (2004a) awards focus upon race. In contrast, Prudential Financial s (2004) hiring policies address race, gender, and disability and Wells Fargo s (2004) awards address gender, disability, culture, race, and sexuality. Freddie Mac (2004a) focuses upon race and gender, and American Express (2004) focuses upon race, gender, and sexuality. 13 For instance, ExxonMobil (n.d.) discusses the increased percentage of women and minorities in their workforce. Kmart (2000) notes that 32% of its workforce is multicultural and Johnson Controls (2004) emphasizes race in discussing diversity initiatives. Citigroup s (2004) effort to attract diverse talent focus upon race, gender, and sexuality. Abbott Laboratories (2004) and United Technologies (n.d.) address race and gender when discussing workforce diversity. Similarly, Dow Chemical (2001) focuses upon gender, age, and race; Bristol-Myers Squibb (n.d.) focuses upon race, sexuality, and gender; and Tyson Foods Inc. (n.d.) focuses upon immigrants. Merrill Lynch (2003) addresses race and gender in discussing multicultural and diversified business development. TIAA-CREF (2004b) focus upon race in discussing the composition of the board of trustees.

13 Altria Group (2004b) includes making accommodations for persons with disabilities within its code of conduct Global Diversity and Inclusion Strategy. 14 Altria Group (2004a) further notes that it has a longstanding relationship with the Industry Labor Council, an organization dedicated to expanding employment opportunities for people with disabilities. Safeway (n.d.) attends career fairs for job seekers with disabilities. FedEx (2004b) and Aetna (2004) express their commitment to including people with disabilities in a diverse work environment by citing their supportive partnerships with the Special Olympics and the National Organization on Disability, respectively. Goldman Sachs s (2004) European operations support employee disability advocacy groups outside of the company. Wells Fargo (2004) identifies people with disabilities as part of a diverse customer base and highlights their efforts toward accessible banking for people with disabilities. Disability-Absent Companies Disability as diversity 109 A few companies on the Fortune 100 list define diversity in terms that seem to exclude people with disabilities (see disability absent column in Table 2). Ten companies (11% of those companies that have publicly available workplace diversity policies) list a number of groups that add to the diversity of the workplace, but do not list persons with disabilities among these groups. In particular, the majority of these companies list gender, race, ethnicity, and sometimes sexual orientation as salient characteristics within their diversity statements. 15 Cardinal Health (n.d.), for instance, notes respect [for] differences in culture, ethnicity, gender and race, but does not mention disability. Cardinal Health s mentoring program focuses on women and racial and ethnic minorities. General Electric (2004) states that [i]n the area of diversity, the company is dedicated to developing the careers of women and minorities. As noted earlier, many of the Fortune 100 express their commitment to diversity in sweeping language that mirrors the basic equal opportunity statement with little exposition, although they generally enumerate which groups are included in diversity. Interestingly, some of these companies reference groups protected by civil rights laws, but do not mention people with disabilities despite the fact that the ADA and numerous state laws designate people with disabilities to this protected class. United Health Group s (2004) diversity policy affirms that the company hires based on qualifications and not on the basis of race, religion, sex, or other protected characteristics. Proctor and Gamble (2003) makes a similar statement, however, limiting the definition of diversity to race, sex, age, cultural heritage, personal background and sexual orientation. It is difficult to determine whether diversity policy statements that do not include people with disabilities within the scope of those policies actually have a negative impact on the community of people with disabilities or the likelihood that they will be hired or retained by a particular company. Nonetheless, it is interesting that some companies still see diversity as defined in terms of race, gender, and ethnicity. 14 Washington Mutual (2004), similarly, notes that anyone needing an accommodation to complete the interview process should notify the recruiter. 15 For example, diversity covers a broad range of personal attributes and characteristics such as race, sex, age, cultural heritage, personal background and sexual orientation (Proctor & Gamble, 2003).

14 110 P. Ball et al. Supplier Diversity Statements In addition to adopting diversity statements for employment purposes, many Fortune 100 companies adopt policies regarding supplier diversity. These statements express the corporation s commitment to suppliers that are owned by members of traditionally under-represented groups. As with diversity policies in the employment context, these statements vary in their commitment to including people with disabilities within the spectrum of diversity. Table 3 sets out the types of supplier diversity policy proffered by companies in the industries represented in the Fortune 100. Here again, the categories are diversity policies that are inclusive of disability, offer no particular definition of diversity (i.e. non-committal), and define diversity but do not include people with disabilities (i.e. disability absent). Additionally, corporations for which no supplier diversity policy was located are identified in the none found column. Inclusive Supplier Diversity Statements We found supplier diversity policies for 73 of the Fortune 100. Among these, 15% of the policies include people with disabilities within the meaning of diversity. 16 Recall, for instance, that Bank of America includes disability in their diversity statement. This commitment carries over into their supplier diversity statement, which includes promoting women, minority, and disabled-owned small businesses (2004b). Similarly, IBM (n.d.) and Verizon (2004) mention disability in their supplier diversity policies. Other companies, such as State Farm, Georgia Pacific, Abbott Laboratories, Citigroup, and Motorola, provide inclusive supplier diversity policies, yet do not include people with disabilities in their employee diversity statements. 17 Finally, some corporations do not mention people with disabilities in their supplier diversity statements, but their statements are written broadly so they could be interpreted to include people with disabilities (e.g. Marathon Oil, 2003b). 18 Hewlett Packard (2004b) notes that the suppliers who may be eligible under the company s supplier diversity policy include men and women from different nations, cultures, ethnic groups, generations, backgrounds, skills, [and] abilities. Similarly, Sprint (2004) eschews categorical definitions of supplier diversity in favor of highlighting the company s diverse group of suppliers. The company further highlights success stories showcasing women and minority owned enterprises that engage in business with Sprint (2004), but then fails to acknowledge any similar operations owned by people with disabilities. These companies are listed as disability-absent in Table 3 because they do not explicitly mention disability. 16 For purposes of this analysis, disability does not include references to disabled veteran status. 17 Refer to Table 2, non-committal and disability absent columns. State Farm s (n.d.b) supplier diversity program specifically mentions businesses owned by physically challenged persons. Georgia Pacific s (n.d.b) specifically mentions businesses owned by handicapped individual[s] and servicedisabled individual[s]. Abbott Laboratories (2001) policy supports nonprofit organizations designed to provide employment for physically disabled and mentally impaired. 18 Marathon Oil limits eligibility for supplier diversity program to minority-owned, women-owned, and small disadvantaged businesses (emphasis added).

16 112 P. Ball et al. minority-owned businesses in its supplier diversity statement. 19 Freddie Mac (2004b) defines its supplier diversity program solely in terms of race and gender. JP Morgan Chase (2004c) does not explicitly define diversity in its policy, but requires certification by one of several groups, such as the Small Business Administration (SBA). 20 JP Morgan Chase (2004c) considers certification by the National Gay and Lesbian Chamber of Commerce sufficient to establish membership in the company s supplier diversity network, but does not recognize membership in any disability organizations for the same purpose. Twenty-two (of forty-four) companies that adopt non-committal employee diversity policies state their policy with regard to supplier diversity in a way that excludes people with disabilities. 21 These companies limit their definition of supplier diversity to women and minorities (e.g. Merck, 2004) and, sometimes, disabled veterans (e.g. SBC Communications, 2003). In addition, 19 companies whose supplier diversity statements do not include people with disabilities do include people with disabilities in their definition of workforce diversity. 22 Corporations such as MetLife (2003b), Lowe s (2004b), and Wachovia (2004b) list people with disabilities as an important part of workplace diversity, but do not include them in the disability supplier statement. Caterpillar (n.d.) places emphasis on supplier diversity and notes a number of awards in this area by groups representing women and racial and ethnic minorities. Although Caterpillar includes people with disabilities in their employee diversity statement, no similar mention is made in the context of the company s supplier diversity program (n.d.). Many of the companies represented on the Fortune 100 list are considered the top companies for encouraging supplier diversity, as noted by Diversity Business.com (2003). The Diversity Business.com listing was based on the responses of 200,000 women and minority owned businesses and, therefore, represents the views of a significant number of women and minorities that benefit from the supplier diversity policies of the represented companies. This makes it possible to examine whether there is a relation between a company s publicly available supplier diversity policy and the response of its intended beneficiaries. A number of Fortune 100 companies comprise the majority of those that made Diversity.com s list of the top 50 companies that support women and minority owned businesses. Table 4 provides a comparison of the 37 Fortune 100 companies that made the Diversity Business.- com list with their supplier diversity policy status. Although there are a few companies on the Diversity Business.com list that are not Fortune 100 companies, 26 of the 37 Fortune 100 companies appear in either the disability absent or none found category. This indicates that a focused strategy for identifying under-represented suppliers may be an effective way to enhance business relationships with those suppliers. 19 Kmart works with minority-owned vendors who have been certified by the National Minority Business Council and the Women s Business Council. 20 SBA offers certification and various benefits to businesses that are at least 51% owned by socially and economically disadvantaged individuals. 21 This figure is arrived at by cross-tabulating the chart of companies that are non-committal in defining diversity for purposes of their workplace diversity policies and those that do not include people with disabilities in their supplier diversity statements. 22 Similarly, this figure is arrived at by cross-tabulating the chart of companies that include people with disabilities in the definition of workplace diversity and those that do not include people with disabilities in their supplier diversity statements.

17 Table 4. Diversity Business.com list and supplier diversity policy status Disability as diversity 113 Inclusive Non-committal Disability absent None found 1 Wal-Mart 10 BellSouth 2 Lockheed Martin 12 Northrop Grumman 5 IBM 16 Microsoft 3 United Parcel Service 40 Pfizer 8 Bank of America 35 Fannie Mae 4 Dell Computers 44 Walt Disney 11 American Express 43 Cisco Systems 6 General Motors 45 Intel 18 Verizon 47 Cardinal Health 7 Boeing Company 37 Wells Fargo 14 SBC Communications 15 Ford Motor 19 Coca-Cola (sic) 19 PepsiCo (sic) 21 Altria Group 22 General Electric 23 Johnson & Johnson 24 Hewlett-Packard 25 ExxonMobil 28 Procter & Gamble 30 Time Warner Inc. 31 AT&T 36 Sprint 41 Abbott Laboratories 46 Bristol-Myers Squibb 49 Wachovia 50 Sears Roebuck 2004 Additions to the Fortune 100 Five companies were recently added to the Fortune 100 for 2004, including Comcast, Duke Energy, Williams, Wellpoint Health Networks, and Medco Health solutions. Comcast (2004a) expresses its commitment to employing people with disabilities in a generic equal opportunity statement. The rest of the section of the corporate website is devoted to a discussion of diversity, but does not delineate which groups add to a diverse workforce. It is notable that the website indicates that Comcast will participate in a job fair for multi-ethnic students and students with disabilities (Comcast, 2004b). Although Comcast s supplier diversity policy does not specifically mention disability, the section on eligibility criteria does include people with disabilities (Comcast, 2004c). Duke Energy s workplace diversity policy limits the definition of diversity to women and ethnic and social backgrounds (2004a). The company has an antiharassment policy in place that prohibits harassment on the basis of disability (2004b). Duke Energy s (2004c) supplier diversity initiative includes minorities, women, Vietnam-era vets and persons with disabilities capable of providing commodities and services at competitive prices ; however, its eligibility criteria appear to apply only to women, minorities, and disabled veterans. The Williams (2004b) workplace diversity policy does not mention particular groups, although there is a link to its standard equal opportunity policy enumerating required groups, including disabilities. A supplier diversity policy for Williams could not be located. Similarly, Wellpoint Health Networks (2004) defines diversity but specifies no groups. A diversity policy for Medco Health Solutions (2004) could not be located.

18 114 P. Ball et al. DISCUSSION A significant portion of Fortune 100 companies recognize the role of people with disabilities in a diverse workforce; forty-two percent of Fortune 100 companies expressly mention disability within the publicly available written statements of their workplace diversity policies. Though it is not yet possible to generalize the trends evident among the Fortune 100 to other companies in the same industries, it is interesting to note patterns that emerge. For example, technology sector companies represented on the Fortune 100 list are the most consistent in their inclusion of people with disabilities in their diversity policy statements, perhaps also in response to Section 508 of the Rehabilitation Act. Similarly, although there are few chemical companies on the list, all of them include people with disabilities in their diversity policies. By contrast, diversity policies among financial companies tend to be less specific about the definition of diversity and, overall, these companies were somewhat less likely to have such policies. We also found that where the diversity policy includes people with disabilities within the definition of a diverse workforce, many such companies fail to mention a commitment to the inclusion of people with disabilities, and yet laud their accomplishments with other under-represented groups. Conversely, many companies evidence their commitment to hiring people with disabilities with recruitment efforts that target qualified people within that population as well as other underrepresented populations. Fortune 100 companies possess enormous hiring and market power. In recognition of the importance of the purchasing decisions of these companies in the marketplace, many of them have instigated supplier diversity policies to promote a diverse supplier base. While the number of companies including disability within their definition of diversity for purposes of employment is significant, only 11 of the companies that have written supplier diversity policies express a commitment to people with disabilities within their policies to promote supplier diversity. In addition to the immediate impact of establishing relationships with supplier companies owned by minorities, women, and people with disabilities, these kinds of initiatives build the diverse employer base of the future. As noted in the Bank of America (2004b) supplier diversity policy statement, a primary goal of supplier diversity policies is helping minority, women, and disabled-owned businesses grow and expand opportunities within their communities. To that end, the majority (73%) of Fortune 100 companies have established supplier diversity policies that promote the patronage of under-represented suppliers. Another factor that may contribute to the existence of an inclusive supplier diversity policy is the role of the Small Business Administration (SBA), which, as noted above, offers certification and various benefits to businesses that are at least 51% owned by socially and economically disadvantaged individuals. African-Americans, Hispanic Americans, Asian Pacific Americans, Subcontinent Asian Americans, and Native Americans are presumed to qualify. Seventy percent of supplier diversity policies include these groups and women in their definition of diverse suppliers under the company s supplier diversity initiative (Small Business Association, 2004). Although it is possible for a business owned by a person with a disability to achieve certification under the SBA s 8(a) program, [e]ntrepreneurs with disabilities must go through a lengthy, bureaucratic process to be certified for 8[a] whereas

19 Disability as diversity 115 other disadvantaged small business owners with presumptive 8[a] eligibility do not (Paralyzed Veterans of America, n.d.). Certification programs, such as that of the SBA, are worthy of further research to determine their impact on the inclusion of workers and suppliers with disabilities among America s top corporations. CONCLUSION Although the importance of policies and procedures that increase diversity in the workplace has been recognized by most Fortune 100 companies, many do not include (at least explicitly) the contribution of people with disabilities to the diverse work environment. Many companies that recognize people with disabilities as an important element of a diverse workforce do not state this commitment with regard to efforts to recruit and retain people with disabilities. Few companies that describe their commitment to diversity in sweeping, generic terms evidence their commitment to a diverse workforce with recruitment and retention efforts aimed at people with disabilities. Finally, a number of companies list groups that are included in the definition of diversity, but do not include people with disabilities on that list. While it is encouraging that the most successful companies in the United States show significant efforts to include people with disabilities in the diverse workforce, this examination of company diversity policies reveals that there remains room for improvement. Furthermore, many companies do not support businesses owned by people with disabilities, although they develop initiatives to advance minority and women owned businesses and make an effort to engage suppliers that are owned by women and racial, ethnic, and cultural minorities. Although it is difficult to say what, if any, effect these trends have on people with disabilities as job-seekers, employees, consumers, and small business owners it is possible that people with disabilities are not benefiting from the focus on diversity as much as other groups that fall within definitions of diversity. In turn, companies that fail to include people with disabilities within their definitions of diversity may not be reaping the benefits of a diverse workforce. Diversity policies have become an important part of successful companies management strategies. The largest percentage of growth in the workforce over the next several decades is likely to be among women, minorities and immigrants, as well as an increasing number of people with disabilities entering or re-entering the workforce (U.S. Department of Labor, 1996). Regardless of the extent to which the ADA and other federal initiatives help increase the employment of people with disabilities, the rate of people with disabilities in the workforce is expected to increase as the population ages (Zwerling et al., 2003). In this investigation, we have identified three major types of diversity policy with respect to people with disabilities: (1) those that explicitly include people with disabilities in the definition of diversity, (2) those that are non-specific as to what constitutes diversity, and (3) those that mention minority, gender, or other status but do not mention disability specifically. This investigation finds that while most Fortune 100 companies have policies promoting workplace and, to a lesser extent, supplier diversity, many companies fail to explicitly recognize the role of people with disabilities in building a diverse marketplace. Furthermore, this investigation reveals that even those companies that include people with

20 116 P. Ball et al. disabilities within these policies do not always support their policies with actions that actively promote the inclusion of people with disabilities in the workplace and initiatives to work with diverse suppliers. There is reason for optimism. This investigation shows there are a number of companies that include people with disabilities within the definition of diversity and, by extension, in the diverse workplace itself. A smaller number of companies include people with disabilities in their supplier diversity statements and make efforts to promote and support businesses that are owned by people with disabilities. Future research must examine more closely the actual effect of diversity policies on people with disabilities in the workplace, as suppliers, and as consumers of the goods and services offered by these major corporations. There is preliminary evidence that diversity policies generally have a positive impact on the status of people with disabilities in the workplace. A 2004 New York Times market research survey found that companies with workplace diversity programs had twice as many people with disabilities in management positions (2%) as companies without diversity programs (1%) (National Organization on Disability, 2003a). Future research should attempt to assess the inclusion of people with disabilities in corporate diversity strategies as associated with higher rates of hiring and retaining employees with disabilities in those companies. Finally, Thomas Kochan of MIT s Sloan School of Management notes that there is a dearth of data relating efforts at promoting diversity with verifiable outcomes (Hanson, 2003). Kochan and colleagues find that studying diversity in organizations is difficult and companies are reluctant to allow researchers to examine their successes and failures with regard to such a litigious topic. After initiating conversations with 20 Fortune 500 companies, Kochan and his colleagues were able to enlist the participation of four companies (Kochan et al., 2003). They point out that organizations need to do a better job of tracking and evaluating the impact of their strategies for managing a diverse workforce (p. 17). Until these barriers to assessing the effectiveness of diversity policies are overcome, it will be difficult to quantify the effect of including people with disabilities in diversity policies and programs. Additionally, it will be difficult to establish the relation of diversity policies generally, and those including people with disabilities specifically, to the things that Fortune 100 companies care most about: profits, shareholder value, decreased lawsuits, lower staff turn overrates, and other indicators of successful human resource management. The CEOs of the most successful companies in the nation may be inclined to do the right thing with regard to including people with disabilities in the workplace and as suppliers. However, this inclination will need to be transformed into action to demonstrate policies and practices that include people with disabilities are good for profitability. REFERENCES Abbott Laboratories. (2001). Global citizenship report. Retrieved September 2, 2004, from abbott.com/citizenship/pdf/ _gc_report.pdf Abbott Laboratories. (2004). Diversity fact sheet. Retrieved September 1, 2004, from news/facts/diversity.html Aetna. (2004). Awards and recognition. Retrieved September 2, 2004, from aboutaetna/awards_and_recognition.html

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